Grand Island officials are negotiating the purchase of two properties near the city's wastewater treatment plant.
Owners of both properties have accused the city of polluting their private lakes with discharge from the plant.
Tim and Mary Arends filed a claim seeking $500,000 in damages from the city. Jerry and Pam Miller filed a lawsuit seeking $160,000.
Both families claim their lakes were unsafe for humans and unusable for fish or wildlife.
City officials say they are following the advice of environmental consultants in trying to purchase the properties as a buffer zone for the treatment plant.
Pam Miller says it is disappointing the couple's retirement home plans are being changed. However, she says they see the sale to the city as their best option.